The influence of organizational culture and market orientation on performance of microfinance institutions in Kenya

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Abstract

The objective of our study is to assess the influence of organizational culture and market orientation on
performance. The population of the st
udy comprise microfinance institutions that are members of the Association
of Microfinance Institutions (AMFI) in Kenya. We used de
scriptive cross-sectional survey design. We collected
primary data using structured questionnaire. We test our hypotheses through regression analysis. Our results
demonstrate that organizational culture significantly and positively influence variations in performance. The
partial mediation effect of market orientation on the
relationship between organizational culture and performance
was confirmed. The complimentary effect of organizational culture on market orientation implies that
organizations need to spend more resources in nurturing market orientation to create sustainable competitive
advantage through delivery of superior customer experience. We conclude that the influence of organizational
culture and market orientation on performance is more plausible for mature industries regarded as diverse in
terms of customer needs.